If I click on the bookmark icon inside of the KM folder, instead of the bookmarks page coming up, which used to happen, I get this message "Could not initialize XPCOM. Perhaps the GRE is not installed or could not be found."
There IS a "greprefs" folder. I can see the bookmarks from the browser window, but not from the folder link.
What I was trying to do was transfer bookmarks from one version of KM to another, but even though I copied the bookmarks icon from one to version the other, the bookmarks don't show up in the new version's browser window.
So what does that error message mean.

KM bookmarks are organized differently than IE Favorites - you cannot open them by clicking on file (Favorites are the folder where every bookmark is saved as file - while Bookmarks are the single html-file bookmarks.html which contains all the list of bookmarks).

To move bookmarks from one KM-installation to another you need find old bookmarks.html, localized in your Profile folder NOT IN 'greprefs'!!!

If You found the right bookmarks.html You found the profile. Any browser will open the file. Most browser can import it or use the files data directly like K-Meleon. That is how it looks like when opened as a html not as bookmarks file.

The error "Could not initialize XPCOM. Perhaps the GRE is not installed or could not be found." is not related to this html. It means that the K-Meleon.exe can for some reason not initialize a crucial part of the GRE.

The K-Meleon.1.7.alpha.exes create this error on some systems.

You can try to create a fully qualified CMD and use that for starting the browser instead of using a windows link or start the exe from a file manager. The later is the first thing when You try whether a version starts up at all.